Inflation In 2024 Will Be Ruled By Effect Of Targeted Fuel Subsidy

Inflation In 2024 Will Be Ruled By Effect Of Targeted Fuel Subsidy Kuala lumpur: inflation figures for 2024 will be highly dependent on the implementation of domestic policies such as price controls and targeted fuel subsidies, as well as the fluctuation of the ringgit. Kuala lumpur: inflation figures for 2024 will be highly dependent on the implementation of domestic policies such as price controls and targeted fuel subsidies, as well as the fluctuation of the ringgit.

107399238 1712757639124 Gettyimages 2126132520 Gas Oil Prices Jpeg V Executive director and veteran economist at the socio economic research centre (serc) lee heng guie has no doubt that the gradual removal of petrol subsidy via targeted rationalisation will stoke inflation, as fuel and transportation carries a weight of 8.5% and 14.6%, respectively, in the consumer price index (cpi) basket. Petaling jaya: the proposed subsidy rationalisation programme for fuel will help government finances, but concerns remain about its inflationary impact. the programme will start with diesel fuel, which will be rationalised in peninsular malaysia first and is estimated to save rm4bil annually or 0.2% of the gross domestic product (gdp). • we downgrade our headline cpi forecast from 3.2% to 2.7% for 2024. in our earlier assessment, we assumed that the targeted fuel subsidy would be rolled out in jun 24. however, we postulate that the government may require more time to harness the subsidy distribution and fuel price mechanisms. in our. On sunday, finance minister ii datuk seri amir hamzah azizan announced the implementation of targeted subsidies for diesel effective june 10, which would see the government likely to save around rm4bil per year, strengthening the country's financial position.

Fuel Subsidy Rationalisation To Impact Inflation Rate New Straits Times • we downgrade our headline cpi forecast from 3.2% to 2.7% for 2024. in our earlier assessment, we assumed that the targeted fuel subsidy would be rolled out in jun 24. however, we postulate that the government may require more time to harness the subsidy distribution and fuel price mechanisms. in our. On sunday, finance minister ii datuk seri amir hamzah azizan announced the implementation of targeted subsidies for diesel effective june 10, which would see the government likely to save around rm4bil per year, strengthening the country's financial position. Cheow said the government will unveil targeted fuel subsidies during the tabling of budget 2024 in parliament on oct 13, 2023, to replace the existing blanket fuel subsidy. the new policy is likely to start on jan 1, 2024. soaring fuel prices could inflate government’s annual subsidy allocation. Moving into 2024, midf believes the overall inflation rate is predicted to trade higher at 3.2% as the fuel targeted subsidy to be rolled out as early as may 24. in its opinion, the government may introduce a managed float price mechanism for ron95 at rm2.25 2.35 per litre and provide cash handouts to those eligible as guided by the padu database. The government has defended its decision to implement the fuel subsidy rationalisation programme, in which the first phase has seen the retail price of diesel in the peninsula being adjusted to. According to maybank ib’s simulation, if the targeted ron95 petrol subsidy starts on july 1, 2024 to achieve the rm4.1 billion savings in the second half of 2024, the ron95 petrol price needs to be raised by 32 sen per litre, or 15.6%.